The Various Types of Life Insurance Policy
The life insurance policy comes in a variety of forms, and they are not created equal. While there are instances where the death benefits are generally the same, you should also consider the duration, structure and cost which will vary widely in the different types of life insurance. Here are some of the types of life insurance policies, and what you can do in case your life insurance claim has been denied.
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Whole Life or Permanent Insurance
In the Whole Life Insurance Policy, you have guaranteed protection for the duration of your life. In this type of policy, you are basically buying insurance coverage that will pay a fixed and stated amount of cash upon your death. For those who choose this type of insurance, you will be required to pay the premium on a standard basis to be qualified on the death benefits, or you may be able to pay it in a lump sum, often called a Paid Up Policy. It may carry a certain cash value that can increase depending on the dividends which the insurance company pays. Initial premiums can be higher compared to the other types of life insurance, but the buildup of cash value may sometimes be utilized to pay the premium payment in the event you cannot afford or are otherwise unable to make the payments.
Term Life
Term Life Insurance policies are one of the most common policies. It can protect the beneficiaries against any financial loss that they may incur upon your death, or otherwise provide them with a lump sum amount if you die with the specified term. The policy will generally only protect the insurance holder on a limited and definite amount of time. Under this type of policy, it will not usually build any cash value, and the maximum period has a limited term, often up to 30 years. In the event that your term life insurance is denied, the next thing you should do is to contact a life insurance lawyer to assess the situation and help you address your issue.
Universal Life
Adjustable Life and Flexible Premium Life are more popularly known as universal life insurance policies and is a variation of the whole life policy. It is also a permanent policy that provides cash value depending on the existing interest rate. One common difference is that the coverage, cash value, and the premium may be adjusted during the contract period.
Variable Life
A Variable Life insurance policy is basically the combination of the savings and the traditional coverage of whole life and the growth of an investment fund. It is generally composed of two elements, that being a separate and general account. The general account is the liability account that will not be allocated on the individual policy. The separate account, on the other hand, is composed of the investment funds.
Variable-Universal
This is basically a combination of the various features of the Variable and the Universal life insurance policy which gives the customers an opportunity to adjust their choices in terms of investment, death benefits and the premiums. Sadly, the value of the policy is at risk due to the investment risks. The value of the death benefits may increase or decrease contingent upon the success of their investment.
FEGLI
The Federal Government established the Federal Employees’ Group Life Insurance (FEGLI) Program on August 29, 1954. Federal employees who have any life insurance disputes may be bound by the FEGLI program and rules. Our life insurance lawyers have handled FEGLI claims and can help walk through the process to see if you are entitled to FEGLI life insurance benefits.
ERISA
An ERISA life insurance policy is typically a life insurance policy that is funded by an employer. It falls under the Employee Retirement Income Security Act of 1974 (ERISA), and this generally preempts State laws. There are specific requirements to challenge an ERISA life insurance policy, and the time to dispute a claim may be limited.
Denial of Claim
Should your life insurance claim be denied, we recommend gathering whatever information you have and contact a Florida life insurance attorney at the Law Offices of Jason Turchin today for a free consultation.